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CONSOLIDATED FINANCIAL STATEMENTS The University of

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					                THE UNIVERSITY OF
               TOLEDO FOUNDATION
                        AND SUBSIDIARIES




         Consolidated Financial Statements
With Supplemental Schedules and Independent Auditor’s Report

         Year Ended June 30, 2009 and 2008
                    The University of Toledo Foundation and Subsidiaries

                                     Consolidated Financial Statements
                      With Supplemental Schedules and Independent Auditor’s Report

                                    For the Year Ended June 30, 2009 and 2008



                                                           Contents
Report of Independent Auditors.......................................................................................................2

Consolidated Financial Statements

Consolidated Statements of Financial Position................................................................................3
Consolidated Statements of Activities .............................................................................................5
Consolidated Statements of Cash Flows ..........................................................................................9
Notes to Consolidated Financial Statements..................................................................................10

Other Financial Information

Report of Independent Auditors on Other Financial Information .................................................36
Consolidating Statement of Financial Position ..............................................................................37
Consolidating Statement of Activities ...........................................................................................41




                                                          1
                                      Independent Auditor's Report


To the Board of Trustees
University of Toledo Foundation
  and Subsidiaries


We have audited the accompanying consolidated statements of financial position of University of Toledo
Foundation and Subsidiaries, an Ohio not-for-profit corporation (the “Foundation”), as of June 30, 2009
and 2008 and the related consolidated statements of activities and cash flows for the years then ended.
These consolidated financial statements are the responsibility of the Foundation's management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall consolidated financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of University of Toledo Foundation and Subsidiaries at June 30, 2009 and 2008 and the
changes in their net assets and their cash flows for the years then ended, in conformity with accounting
principles generally accepted in the United States of America.

As explained in Notes 1 and 3, the consolidated financial statements include investments that are not
listed on national exchanges or for which quoted market prices are not available. These investments
include limited partnerships, start-up corporations, hedge funds, funds-of-funds, and commingled funds
that are not mutual funds. Such investments totaled $20,110,112 (12.9 percent of net assets) at June 30,
2009 and $24,741,969 (13.0 percent of net assets) at June 30, 2008. The values of these investments have
been provided by the fund managers or general partners in absence of readily determinable market values.
We believe the procedures used by the managers and management in arriving at estimated values of the
underlying securities owned by these nonmarketable investments are reasonable and the documentation is
appropriate. Because of the inherent uncertainty of valuation, the estimated value may differ from values
that would have been used had a ready market for these securities existed and the differences could be
material.




September 29, 2009




                                                    2
            THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                      Consolidated Statements of Financial Position
                                     As of June 30


Assets                                                              2009                 2008
                                                                                      (as restated)
Current assets
 Cash and cash equivalents                                      $     1,083,723   $        1,604,986
 Securities lending collateral (Note 3 and Note 14)                   1,151,421           10,252,334
 Accounts receivable                                                    617,813              413,168
 Notes receivable (Note 8)                                               57,099               53,798
 Contributions receivable, net of allowance for uncollectible
   contributions (Note 2 and Note 12)                                 4,593,800            3,275,257
 Interest receivable                                                    131,303              132,319
 Prepaid expense                                                         20,364               59,426
 Inventory                                                                  -                     72
Total current assets                                                  7,655,523           15,791,360
Other non-current assets
 Investments (Note 12)
   Pooled (Note 3)                                                  119,789,742         150,971,474
   Real estate and other (Note 3)                                     1,061,598             973,667
   Equity assignments (Note 3 and 8)                                        -             4,886,635
   Assets held in charitable remainder trusts (Note 3)                4,800,203           6,628,624
 Total investments                                                  125,651,543         163,460,400
 Notes receivable (Note 8)                                             158,552               215,650
 Prepaid rent                                                          418,848                   -
 Contributions receivable, net of allowance for uncollectible
   contributions and present value adjustments (Note 2)              21,346,469          21,050,288
 Cash value of life insurance and annuities (Note 12)                 1,381,743           1,391,203
 Assets held for sale (Note 10 and Note 12)                           1,200,158           1,368,774
Total other non-current assets                                      150,157,313         187,486,315
Property and equipment
 Land                                                                 4,285,767            3,222,874
 Rental property                                                        981,658              976,931
 Office equipment                                                       931,427              916,532
 Total property and equipment                                         6,198,852            5,116,337
 Less accumulated depreciation                                          956,420              856,435
Net property and equipment                                            5,242,432            4,259,902
Total assets                                                    $   163,055,268   $     207,537,577

See Notes to the Consolidated Financial Statements



                                              3
              THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                   Consolidated Statements of Financial Position (continued)
                                       As of June 30


Liabilities                                                   2009                   2008
                                                                                  (as restated)
Current liabilities
 Accounts payable                                     $         1,617,320 $              721,879
 Securities lending liability (Note 3 and Note 14)              1,151,421             10,252,334
 Notes payable (Note 10)                                        1,319,768              1,407,292
 Contributions payable                                            110,000                158,723
 Deferred revenue                                                 171,725                    -
 Accrued liabilities                                              119,896                112,581
Total current liabilities                                       4,490,130             12,652,809

Non-current liabilities
 Annuities payable (Note 12)                                    3,949,441              4,346,334
Total liabilities                                               8,439,571             16,999,143

Net assets (Notes 1 and 6)
 Unrestricted
   Operating Funds:
     Undesignated                                              (8,899,460)              (559,921)
     Designated - real estate                                   5,295,610              4,190,867
     Designated - board                                         1,251,960              2,015,944
   Total unrestricted operating funds                          (2,351,890)             5,646,890
   Board endowed                                                5,379,479              6,795,115
 Total unrestricted                                             3,027,589             12,442,005

 Temporarily restricted:
  Operating funds                                              31,119,730            38,405,216
  Quasi-endowment                                              54,982,214            72,776,837
 Total temporarily restricted                                  86,101,944           111,182,053

 Permanently restricted                                        65,486,164            66,914,376
Total net assets                                              154,615,697           190,538,434

Total liabilities and net assets                          $   163,055,268     $     207,537,577

See Notes to the Consolidated Financial Statements




                                             4
                      THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                                   Consolidated Statements of Activities
                                     For Year Ending June 30, 2009


                                                                                  Temporarily        Permanently
                                                            Unrestricted           Restricted         Restricted          Total All
                                                             Net Assets            Net Assets         Net Assets           Funds
Support, revenue, and gains (losses):
Public support:
  Unconditional promises to give (gross)                                      $       8,550,001                       $     8,550,001
  Allowance for uncollectible contributions and
    present value adjustment                                                            530,007                               530,007
  Unconditional promises to give (net)                                                9,080,008                             9,080,008
  Contributions                                         $         646,813             5,274,773 $        1,432,328          7,353,914
  Annuities and trusts (net of actuarial adjustments)                                   (18,649)           (34,741)           (53,390)
  Royalties and ancillary businesses                               906,217                                                    906,217
Total public support                                             1,553,030           14,336,132          1,397,587         17,286,749

Administrative fees                                              2,285,837           (1,661,641)            (6,282)           617,914

Return on investments: (Note 3)
 Interest and dividends                                            632,251            2,092,637            258,203          2,983,091
 Net unrealized and realized losses                             (7,308,499)         (24,332,982)        (1,728,865)       (33,370,346)
 Investment fees                                                   (78,044)            (250,818)           (31,735)          (360,597)
Net return on investments                                       (6,754,292)         (22,491,163)        (1,502,397)       (30,747,852)

Other income:
 Ancillary and non-gift                                              8,707            1,850,301            39,448           1,898,456
 Income - Real Estate Corporation                                   64,373                                                     64,373
 University Loan Program                                                                  4,515                                 4,515
Total other income                                                  73,080            1,854,816            39,448           1,967,344

Net assets released from restrictions and other
 transfers:
 Satisfaction of program and donor restrictions                 20,803,568          (20,803,568)               -                      -
 Expiration of time restrictions                                    41,053           (2,334,873)         2,293,820                    -
 Other transfers                                                (2,369,800)           6,020,188         (3,650,388)                   -

Total support, revenue, and gains (losses)              $       15,632,476    $     (25,080,109) $      (1,428,212) $     (10,875,845)


See Notes to the Consolidated Financial Statements




                                                            5
                    THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                             Consolidated Statements of Activities (continued)
                                     For Year Ending June 30, 2009


                                                                             Temporarily      Permanently
                                                       Unrestricted           Restricted       Restricted           Total All
                                                        Net Assets            Net Assets       Net Assets            Funds
Total support, revenue, and gains (losses)           $    15,632,476       $   (25,080,109) $    (1,428,212) $       (10,875,845)

Expenses:
 Program services:
   Academics                                                  6,683,994                                               6,683,994
   University loan program                                      155,984                                                 155,984
   Student aid                                                3,446,665                                               3,446,665
   Capital projects                                           4,585,457                                               4,585,457
   Athletics programs                                         1,766,380                                               1,766,380
   Research                                                     374,286                                                 374,286
 Fund raising                                                   608,822                                                 608,822
 Management and general - operating                           1,876,511                                               1,876,511
 Management and general - Real Estate Corp.                     554,871                                                 554,871
 MCOF Enterprises, Ltd.                                             (16)                                                    (16)
 University Promotions, Ltd.                                      2,659                                                   2,659
 College of Allied Health Sciences, Ltd.                        104,644                                                 104,644
Total expenses                                               20,160,257                                              20,160,257

Decrease in net assets before transfer
  to University of Toledo                                    (4,527,781)       (25,080,109)       (1,428,212)        (31,036,102)
Transfers of equity to the University of Toledo
 (Notes 3 and 8)                                             (4,886,635)                                              (4,886,635)
Total decrease in net assets                                 (9,414,416)       (25,080,109)       (1,428,212)        (35,922,737)

Net assets at beginning of year                              12,442,005        111,182,053        66,914,376        190,538,434

Net assets at end of year                            $        3,027,589    $    86,101,944    $   65,486,164    $   154,615,697




See Notes to the Consolidated Financial Statements




                                                         6
                      THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                               Consolidated Statements of Activities (continued)
                                       For Year Ending June 30, 2008


                                                                                  Temporarily          Permanently
                                                            Unrestricted           Restricted           Restricted          Total All
                                                             Net Assets            Net Assets           Net Assets           Funds
Support, revenue, and gains (losses):
Public support:
  Unconditional promises to give (gross)                                      $      11,618,524                         $    11,618,524
  Allowance for uncollectible contributions and
    present value adjustment                                                            945,953                                 945,953
  Unconditional promises to give (net)                                               12,564,477                              12,564,477
  Contributions                                         $         163,372             7,033,601    $       2,397,616          9,594,589
  Annuities and trusts (net of actuarial adjustments)                 -                  26,019               55,793             81,812
  Royalties and ancillary businesses                              831,111                   -                    -              831,111
Total public support                                              994,483            19,624,097            2,453,409         23,071,989

Administrative fees                                              2,471,973           (1,782,485)              (6,789)           682,699

Return on Investments: (Note 3)
 Interest and dividends                                            657,624            2,540,856             291,443           3,489,923
 Net unrealized and realized losses                             (2,178,840)          (7,801,196)           (508,872)        (10,488,908)
 Equity in net income of investments                               213,186                  -                   -               213,186
 Investment fees                                                  (101,685)            (367,597)            (39,755)           (509,037)
Net return on investments                                       (1,409,715)          (5,627,937)           (257,184)         (7,294,836)

Other income:
 Ancillary and non-gift                                           168,715             1,697,402              33,237           1,899,354
 Income - Real Estate Corporation                                 302,059                   -                   -               302,059
 University Loan Program                                              -               2,512,824                 -             2,512,824
Total other income                                                470,774             4,210,226              33,237           4,714,237

Net assets released from restrictions and other
 transfers:
 Satisfaction of program and donor restrictions                 11,718,753          (11,643,706)            (75,047)                    -
 Expiration of time restrictions                                    54,945             (297,925)            242,980                     -
 Other transfers                                                   (94,399)             901,267            (806,868)                    -
Total net assets release from restrictions and other
 transfers                                                      11,679,299          (11,040,364)           (638,935)                    -

Total support, revenue, and gains (losses)              $       14,206,814    $       5,383,537    $       1,583,738    $    21,174,089


See Notes to the Consolidated Financial Statements




                                                            7
                    THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                             Consolidated Statements of Activities (continued)
                                     For Year Ending June 30, 2008


                                                                            Temporarily        Permanently
                                                       Unrestricted          Restricted         Restricted         Total All
                                                        Net Assets           Net Assets         Net Assets          Funds
Total support, revenue, and gains (losses)           $    14,206,814      $      5,383,537   $     1,583,738   $     21,174,089

Expenses:
 Program services:
   Academics                                                 5,643,125                                                5,643,125
   University loan program                                   1,132,413                                                1,132,413
   Student aid                                               3,875,742                                                3,875,742
   Capital projects                                            312,309                                                  312,309
   Athletics programs                                        1,650,316                                                1,650,316
   Research                                                    257,550                                                  257,550
 Fund raising                                                  760,501                                                  760,501
 Management and general - operating                          2,054,134                                                2,054,134
 Management and general - Real Estate Corp.                    499,111                                                  499,111
 MCOF Enterprises, Ltd.                                         86,811                                                   86,811
 University Promotions, Ltd.                                   118,102                                                  118,102
 College of Allied Health Sciences, Ltd.                        62,041                                                   62,041
Total expenses                                              16,452,155                                               16,452,155

Increase (decrease) in net assets before transfer
  to University of Toledo                                   (2,245,341)          5,383,537         1,583,738          4,721,934
Transfers of equity from the University of Toledo
  (Note 3 and 8)                                                   -             4,886,635               -            4,886,635
Total increase (decrease) in net assets                     (2,245,341)         10,270,172         1,583,738          9,608,569

Net assets at beginning of year                             14,687,346        100,911,881        65,330,638         180,929,865

Net assets at end of year                               $ 12,442,005         $ 111,182,053      $ 66,914,376       $ 190,538,434




See Notes to the Consolidated Financial Statements




                                                        8
      THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                     Consolidated Statements of Cash Flows
                                 As of June 30


                                                                                         2009               2008
Cash Flows from Operating Activities:
  Change in net assets                                                               $   (35,922,737) $      9,608,569
  Adjustments to reconcile changes in net assets to net cash (used in) provided by
    operating activities:
    Noncash items:
       Depreciation                                                                          113,284           223,526
       Permanently restricted contributions held as endowments                            (1,432,329)       (2,397,616)
       Provision for uncollectible contributions, net of actuarial
          adjustments on annuity obligations                                                340,478            428,445
       Transfer of equity assignments to (from) the University of Toledo                  4,886,635         (4,886,635)
       Unrealized / realized losses on investments                                       33,370,346         10,488,908
       (Gain) loss on sale of assets / assets held for sale                                 168,616           (142,304)
    Changes in assets and liabilities:
       Accounts receivable                                                                  (204,645)          915,531
       Interest receivable                                                                     1,016            19,093
       Prepaid expense                                                                      (379,786)          135,460
       Inventory                                                                                   72           15,482
       Contributions receivable                                                           (1,955,202)       (7,572,222)
       Cash surrender value of life insurance                                                  9,460          (129,311)
       Accounts payable                                                                      895,441          (743,108)
       Contributions payable                                                                 (48,723)           22,723
       Student loan program payable                                                              -             (58,355)
       Annuity payable obligation                                                           (396,893)          509,787
       Deferred revenue and other accruals                                                   179,040            55,973
Net cash (used in) provided by operating activities                                         (375,927)        6,493,946
Cash Flows from Investing Activities
    Proceeds from sale of property and equipment                                                 -             446,292
    Purchase of property and equipment                                                    (1,095,814)       (1,530,268)
    Sales of investments                                                                   8,353,153         1,846,310
    Purchases of investments                                                              (8,801,277)       (9,409,839)
Net cash used in investing activities                                                     (1,543,938)       (8,647,505)
Cash Flows from Financing Activities
    Change in note receivable                                                                53,797           (243,254)
    Payments on note payable                                                                (87,524)          (113,693)
    Permanently restricted contributions held as endowments                               1,432,329          2,397,616
Net cash provided by financing activities                                                 1,398,602          2,040,669
Net decrease in cash and cash equivalents                                                  (521,263)          (112,890)
Cash and cash equivalents - beginning of year                                             1,604,986          1,717,876
Cash and cash equivalents - end of year                                              $    1,083,723 $        1,604,986
Supplemental Disclosure of Cash Flow Information
  Cash paid during the year for interest                                             $       39,781     $     117,760
  Non-cash investing and financing activities:
    Origination of student loans held in trust financed by third party                           -      $   38,330,477
    Sale of student loans held in trust by third party                                           -      $   44,893,592




                                                            9
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 1 - Organization and Significant Accounting Policies

Organization

The University of Toledo Foundation (Foundation) is a not-for-profit Ohio corporation organized
to receive, hold, invest and administer property and to make expenditures to or for the benefit of
the University of Toledo (University).

The consolidated financial statements for the Foundation include accounts of wholly owned
subsidiaries, the University of Toledo Foundation Real Estate Corporation, MCOF Enterprises,
Ltd., University Promotions, Ltd., and CAHS, Ltd. The University of Toledo Foundation Real
Estate Corporation (the Corporation) was organized to acquire, hold title to and collect income
from real property for the benefit of the Foundation and the University of Toledo. MCOF
Enterprises, Ltd. (Enterprises) is an Ohio limited liability company organized to assist the
University in developing and selling intellectual property and other business ventures.
University Promotions, Ltd. (Promotions) is an Ohio limited liability company organized to
engage in the sale of University branded goods. CAHS, Ltd. (CAHS) is an Ohio limited liability
company organized as a practice plan for certain licensed health service providers.

Effective November 19, 2008, Promotions and CAHS were certified by the Ohio Secretary of
State for dissolution and ceased business operations.

The Foundation has included the activities of the Student Loan Trust (Trust), a trust used to fund
student loans held for sale for the benefit of the students of the University of Toledo. The loan
program was discontinued during 2008.

Assets, liabilities, and operations of all the above entities have been included in the
accompanying financial statements. All significant intercompany balances and transactions have
been eliminated in the consolidated financial statements.

Significant Accounting Policies
Fund Accounting and Net Asset Classifications

To ensure compliance with restrictions placed on the resources available to the Foundation,
accounts are maintained in accordance with the principles of fund accounting. This is the
procedure by which resources are classified for accounting and reporting into funds established
according to their nature and purpose. Net assets are classified and reported based on the
existence or absence of donor-imposed restrictions. In the financial statements, funds that have
similar characteristics have been combined into the net asset categories of unrestricted,
temporarily restricted and permanently restricted.




                                          10
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 1 - Organization and Significant Accounting Policies (continued)

Fund Accounting and Net Asset Classifications

  •   Unrestricted net assets are not restricted by donors, or donor-imposed restrictions have
      expired. Unrestricted funds endowed by the governing board for the same purposes as
      permanently restricted funds are classified as unrestricted quasi-endowment funds. The
      governing board has the right to decide at any time to expend the quasi-endowment funds.

  •   Temporarily restricted net assets contain donor-imposed restrictions that permit the
      Foundation to use or expend the assets as specified. The restrictions are satisfied either by
      the passage of time or by actions of the Foundation. Temporarily restricted quasi-
      endowed funds include donor endowments which are subject to the endowment policies
      outlined in Note 7 but do not contain donor restrictions as to the preservation of the
      corpus. Income from investments in temporarily restricted quasi-endowment funds is
      temporarily restricted until the donor-stipulated restrictions are met for spending of such
      income.

  •   Permanently restricted net assets contain donor-imposed restrictions that stipulate the
      resources be maintained permanently, but permit the Foundation to use or expend part or
      all of the income derived from the donated assets for either specified or unrestricted
      purposes. The unexpended income from these donated assets is classified as temporarily
      restricted quasi-endowment funds.

Ohio legislature passed Amended House Bill Number 522 and enacted a version of the Uniform
Prudent Management of Institutional Funds Account (UPMIFA), adopted by the National
Conference of Commissioners on Uniform State Laws. UPMIFA is effective June 1, 2009. The
bill makes changes to several aspects of law concerning the standards of conduct in managing
and investing institutional funds, spending rules that apply to institutional endowment funds, the
delegation of authority to manage investment funds, and the release or modification of
restrictions contained in charitable gifts made by donors. UPMIFA revises and repeals sections
of the Uniform Management of Institutional Funds Act (UMIFA).




                                          11
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 1 - Organization and Significant Accounting Policies (continued)

Accounts Receivable

Accounts receivable are stated at net realizable value. An allowance for doubtful accounts is
established based on a specific assessment of all invoices that remain unpaid following normal
payment periods. All amounts deemed uncollectible are charged against the allowance for
doubtful accounts in the period that determination is made. No allowance was deemed necessary
at June 30, 2009 or 2008.

Investments

Investment securities are stated at fair value, in accordance with Statement of Financial
Accounting Standards No. 157 (SFAS 157) following the fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value into three broad levels. The fair value
hierarchy gives priority from highest to lowest to quoted prices in active markets for identical
assets (Level 1); inputs other than quoted prices included within Level 1 that are observable for
the asset directly or indirectly (Level 2); and unobservable inputs for assets (Level 3).
Investments valued at fair value using Level 1 inputs are cash equivalents, common stocks, and
mutual funds that have observable quoted prices in active markets. Fair values determined by
Level 2 inputs such as interest rates and yield curves are government bonds, government agency
bonds, corporate bonds, and convertible bonds. Hedge funds, partnerships, and technology equity
transfers are measured based on Level 3 inputs that are unobservable such as recent purchases
and sales, underlying fund holdings, and information provided by fund managers and general
partners including: audited financial statements, unaudited financial statements, and net asset
valuations.

Purchases and sales of investment securities are recorded on the trade date. Realized gains or
losses from sale of securities are determined using the cost basis of the securities sold. Interest
and dividend income is reported when earned. Investment income and related administrative,
investment and fiduciary expenses are allocated to the funds on a basis which reflects the ratio of
the related funds invested in the pooled portfolio to total market value.




                                          12
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 1 - Organization and Significant Accounting Policies (continued)

Contributions Receivable

Unconditional promises to give are recognized as temporarily restricted revenue when amounts
are pledged. Conditional promises to give are recognized when the conditions on which they
depend are substantially met and the promises become unconditional.

Contributions receivable are stated at fair value in accordance with SFAS 157 and Statement of
Financial Accounting Standards No. 159 (SFAS 159), Fair Value Option for Financial Assets
and Financial Liabilities.

In-Kind Gifts

In-kind gifts, when received, are reflected as contributions in the accompanying financial
statements at the estimated fair value at the date of receipt. The Foundation received in-kind
gifts in 2009 and 2008 valued at $125,835 and $140,320, respectively.

Student Loans Held in Trust

As the Foundation is the primary beneficiary of the Trust, the activities of the Trust are included
in the accompanying consolidated financial statements. The Trust originates student loans to
students at the University of Toledo under the Federal Family Education Loan Program (FFELP)
which are 100 percent insured by the federal government. The FFELP is subject to a
comprehensive recertification every five years and to periodic regulatory changes. During 2007,
the FFELP recertification reduced the amount of income that lenders could earn from the
program resulting in the Foundation discontinuing the loan program in March 2008.

Charitable Remainder Trusts

The Foundation is named as a beneficiary of several irrevocable trusts. The assets of the trusts
are held by third parties as co-trustees appointed by the Foundation or by a trustee designated by
the donor who manages the assets and distributes the income as defined in each trust. The
Foundation’s interest in the charitable reminder trusts is recognized based on the fair market
value of the trust assets, less any liabilities of the trust. Under a split-interest trust, the donor is
paid specified distributions for a future period of time and upon termination of the trust, the
Foundation receives all or a portion of the trust assets.




                                            13
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 1 - Organization and Significant Accounting Policies (continued)

Property and Equipment

Property and equipment are recorded at cost when purchased. Donated property is recorded at
estimated fair value at the date of acquisition. Depreciation is provided on the straight-line and
accelerated methods over the estimated useful lives of the assets which range from 5 to 39 years.
Contributions of long-lived assets, such as property, are recognized as an increase in unrestricted
net assets in the year the asset is received.

Life Insurance Cash Surrender Value

The Foundation is the owner of certain life insurance policies on various donors who have
named the Foundation as beneficiary.

Annuities Payable

Annuities payable represent the cumulative present value of the liabilities to donors of
irrevocable charitable remainder trusts and gift annuities based on the life expectancy of each
annuitant or based upon the fixed term of the annuity.

Administrative Fees

In 2009 and 2008, the Foundation charged a 1.25% and 1.35% fee (1.6% for former MUOF
funds), respectively, based on permanently restricted and quasi-endowed asset balances for
managing and administering the investments under its control. In addition, the Foundation also
charges administrative fees for pooled investments belonging to the University of Toledo and the
University of Toledo Alumni Association. The amount charged to the University of Toledo and
the University of Toledo Alumni Association for the years ended June 30, 2009 and 2008 was
$617,914 and $682,699, respectively. Administrative fees charged to restricted funds of the
Foundation are included in unrestricted revenue.

Income Tax Status

The Foundation and the Corporation are incorporated under the laws of the State of Ohio as
nonprofit corporations and are exempt from state and local income taxes. The Internal Revenue
Service has determined that the Foundation and the Corporation are tax-exempt organizations as
defined under Section 501(c)(3) and Section 501(c)(25)(C) of the Internal Revenue Code,
respectively. Other subsidiaries of the Foundation are incorporated in the state of Ohio as limited
liability companies and may cause the Foundation to be subject to unrelated business income tax
on certain activities unrelated to its primary mission.



                                          14
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 1 - Organization and Significant Accounting Policies (continued)

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements. Estimates also affect the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.

Reclassification

Certain prior year amounts have been reclassified in order to conform to current year
presentation.

Subsequent Events

The financial statements and related disclosures include evaluation of events up through and
including September 29, 2009, which is the date the financial statements were issued.




                                          15
        THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                        Year Ended June 30, 2009 and 2008

NOTE 2 - Contributions Receivable

As of June 30, 2009 and 2008, donors to the Foundation have made unconditional promises to
give that are measured at fair value. A risk premium has been estimated by management based
on uncertainty factors and the remaining expected cash flows from unconditional promises to
give are discounted to a net present value based on a risk-free interest rate. Write-offs of
uncollectible pledges for the years ended June 30, 2009 and 2008 amounted to $340,478 and
$428,445, respectively. Contributions receivable at June 30 are as follows:

                                                       2009             2008
           Within one year (FY 2010)               $      5,200,605 $     3,694,816
           One to five years (FY 2011 - FY 2014)         10,869,520      13,491,189
           More than five years (FY 2015+)               17,877,285      15,676,688
                                                         33,947,410      32,862,693
           Risk premium                                  (1,657,175)     (1,607,882)
           Present value discount                        (6,349,966)     (6,929,266)
           Total net receivable                    $     25,940,269 $    24,325,545

In May 2006, the Foundation received a pledge of $15 million to establish three endowed funds
to support the University of Toledo, College of Education. The timing and amounts of the
payments and the amounts allocated to the Funds shall be determined by the donors. However,
the donors agree to complete the pledge within 15 years. The pledge balance due is recorded at
fair value as a long-term contribution receivable valued at $9,572,746 and $8,790,041 as of
June 30, 2009 and 2008, respectively.

NOTE 3 - Investments

Some investments of the University of Toledo and the University of Toledo Alumni Association
are pooled with investments of the Foundation. The pooled investments are managed by the
Foundation.




                                             16
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 3 - Investments (continued)

The following is the Foundation’s portion of the pooled investments as of June 30, 2009:

                                                              Cost               Market     Unrealized G/L
    Cash equivalents                                   $     10,355,302       $ 10,355,302 $           -
    Common stocks                                            81,229,782          62,883,383   (18,346,399)
    Mutual funds - fixed income                              22,322,585          21,807,783       (514,802)
    Hedge funds                                              21,123,089          18,232,459     (2,890,630)
    U.S. government and agency issues                         3,344,985           3,475,812        130,827
    Partnerships                                              1,735,775           1,778,653         42,878
    Corporate bonds                                           1,226,718           1,256,350         29,632
    Total pooled investments                            $   141,338,236       $ 119,789,742 $ (21,548,494)

    Total unrealized depreciation                                                            $ (21,548,494)
    Less net gain for the year ended June 30, 2008                                               2,036,428
      Unrealized loss for the year                                                             (23,584,922)
      Realized loss for the year                                                                (8,149,701)
    Total net unrealized and realized loss for the year ended June 30, 2009                  $ (31,734,623)



The following is the Foundation’s portion of the pooled investments as of June 30, 2008:

                                                             Cost         Market      Unrealized G/L
    Cash equivalents                                   $      5,205,400 $   5,205,400 $          -
    Common stocks                                           100,335,057   101,785,197     1,450,140
    Mutual funds - fixed income                              20,102,576    20,043,991        (58,585)
    Hedge funds                                              18,377,898    19,054,227       676,329
    U.S. government and agency issues                         3,302,265     3,361,817         59,552
    Partnerships                                                885,772       801,107        (84,665)
    Corporate bonds                                             726,078       719,735         (6,343)
    Total pooled investments                           $    148,935,046 $ 150,971,474 $   2,036,428

    Total unrealized appreciation                                                            $   2,036,428
    Less net gain for the year ended June 30, 2007                                              34,212,720
      Unrealized loss for the year                                                             (32,176,292)
      Realized gain for the year                                                                22,211,222
    Total net unrealized and realized loss for the year ended June 30, 2008                  $ (9,965,070)




                                                17
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 3 - Investments (continued)

Other sources of realized and unrealized gains and losses include sales of gifted assets and assets
held in charitable remainder trusts. Sales of gifted assets resulted in a $555 gain and a $16,632
loss for the years ended June 30, 2009 and 2008, respectively. The trusts are principally
comprised of equity securities and fixed income securities. Unrealized losses of $790,234 and
$648,547 and realized losses of $846,044 and realized gains of $141,341 were recognized by the
trusts for the years ended June 30, 2009 and 2008, respectively.

Investment and custody fees of $360,597 and $509,037 relating to the Foundation’s investments
were incurred for the years ended June 30, 2009 and 2008, respectively.

The Foundation holds 28 acres of real estate that is classified as investments on the consolidated
statements of financial position. Real estate held as investments and recorded at cost totaled
$932,167 as of June 30, 2009 and 2008. Other investments at cost totaled $129,431 and $41,500
as of June 30, 2009 and 2008, respectively.

During 2008, the University assigned its rights in the equity of four start-up organizations (start-
ups) to the Foundation. The investments in these organizations were recorded by the Foundation
at fair value and totaled $4.9 million at June 30, 2008. Effective June 30, 2009, the Foundation
assigned its rights in the equity of the start-ups to the Science, Technology and Innovations
Enterprises Ltd. (STIE), a separate 501(c)3 organization and component unit of the University.
The investments in the start-up had a fair market value of $4.9 million at the time of the transfer.

In April 2002, the Foundation contributed land with an appraised value of approximately
$95,000 to Foundation Park Investors, LLC (“Foundation Park”) in exchange for a 33%
membership interest in Foundation Park. Foundation Park constructed an office facility, in
which the former MUO Foundation conducted its operations. Foundation Park sold the building
in April 2008. The income from the sale is reflected in the Foundation’s statement of activities.

The Foundation entered into a subscription agreement to purchase membership interest in Rocket
Venture Fund, LLC (Rocket Venture), an Ohio limited liability company, on June 30, 2008, with
a total capital commitment of $150,000. The Foundation made an initial contribution of capital
of $37,500 at the time of the agreement and has subsequently made contributions of capital of
$37,500 for a total capital contribution of $75,000 as of June 30, 2009. The capital commitment
outstanding as of June 30, 2009 is $75,000, which becomes payable upon capital calls from
Rocket Venture. The investment is classified as an investment and recorded at cost in the
amount of $75,000 as of June 30, 2009.




                                           18
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 3 - Investments (continued)

The Foundation entered into an Assignable Option to Purchase agreement (Option) dated
October 22, 2007 and First Amendment to Options (Amendment) dated November 11, 2008,
with the United States of America, on behalf of the Department of Veterans Affairs (VA). The
Option and Amendment grants the VA the exclusive right and option to purchase from the
Foundation certain parcels of land, currently classified as investments, totaling 10 acres, more or
less, for the purchase price of approximately $811,000. The Amendment includes provisions
allowing the VA two extensions of the option period through September 30, 2009. The VA has
exercised the first extended option period which ended on June 30, 2009. The Foundation has
received option fee payments totaling $120,000 from the initial option period and the first
extended option period and has classified those deposits as a liability as of June 30, 2009.

The Foundation entered into an agreement of limited partnership of Sigular Guff Distressed
Opportunities Fund III, LP (Sigular Guff), a limited liability partnership formed under laws of
Delaware, with a committed subscription amount of $5 million on March 12, 2008 on behalf of
the investment pool. The investment pool made an initial contribution of capital of $900,000 at
the time of the agreement and has subsequently made contributions of capital of $1.25 million
for a total capital contribution of $2.15 million as of June 30, 2009. The capital commitment
outstanding as of June 30, 2009 is $2.85 million, which becomes payable upon capital calls from
the partnership. The partnership in Sigular Guff is classified as a pooled investment and recorded
at fair value. The Foundation’s portion of the Sigular Guff investment as of June 30, 2009 was
$1.77 million.

The Foundation participates in a securities lending arrangement with Northern Trust, whereby
securities are loaned to select established brokerage firms for a fee. The Foundation received as
collateral, the market value of the securities borrowed plus a premium of 2.0 percent of the U.S.
Securities and 5.0 percent for non-U.S. securities of the market value of those securities. The
Foundation records the fair value of the collateral received as both a secured lending asset and
liability since the Foundation is obligated to return the collateral upon the return of borrowed
securities. At June 30, 2009 and 2008, the Foundation had loaned $1.12 million and $9.97
million, respectively, under the program. These securities are included in the Foundation's total
of pooled investments as $376,072 and $7,683,480 of common stock, $89,703 and $242,772 of
fixed income mutual funds, and $469,242 and $2,045,128 of U.S. Government and Agency
issues at June 30, 2009 and 2008, respectively.




                                          19
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 3 - Investments (continued)

Although the Foundation’s securities lending activities are collateralized as described above,
they involve both market and credit risk. In this context, market risk refers to the possibility that
the borrowers of securities will be unable to collateralize the loan upon a sudden material change
in the fair value of the loaned securities or the collateral. Credit risk refers to the possibility that
counterparties involved in the securities lending program may fail to perform in accordance with
the terms to their contracts.

The Foundation invests in various investment securities. Investment securities are exposed to
various risks such as interest rate, market, and credit risks. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that changes in the values of
the investment securities will occur in the near term and that such changes could materially
affect the amounts reported in the statement of financial position.

NOTE 4 - Lease Commitments

The Foundation’s operations are conducted in facilities leased from the University of Toledo.
The lease was amended in April 2008 when the Foundation funded renovations to the facilities in
the Driscoll Alumni Center and expanded the square footage leased. The cost of the renovations
plus 3% interest will be credited against the rents otherwise payable. The lease expires in 2012,
and provides for two additional 10-year renewal options. Rental expense charged to operations
under the lease was $58,450 and $40,450 for the years ended June 30, 2009 and 2008,
respectively.

The following is a schedule of future minimum rental payments required under the above
operating lease as of June 30, 2009:
                                                     Amount
                                       2010        $    58,450
                                       2011             58,450
                                       2012             29,225
                                                   $   146,125

NOTE 5 - Pension Plans

The Foundation has non-contributory defined contribution retirement plans covering all
permanent employees who have at least 1,000 hours of services in a 12 consecutive month
period. Contributions are based on a percentage of gross wages. Several employees that were
originally covered by the Ohio Public Employees Retirement System (OPERS) prior to the
Foundation having its own employees were grandfathered into OPERS. Employees participate
in only one of the retirement plans. Total pension expense for the years ended June 30, 2009 and
2008 was $83,591 and $80,085, respectively.



                                              20
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 6 - Net Asset Classification

Temporarily Restricted Net Assets

Temporarily restricted net assets are available for the following purposes at June 30:

                                                 2009               2008
                  Academics             $          35,478,271   $     43,757,573
                  Student aid                      25,058,059         36,917,292
                  Capital projects                  8,000,329          7,641,882
                  Athletic programs                 7,309,062          9,736,378
                  Research                          5,534,084         10,593,089
                  General support                   4,722,139          2,535,839
                                        $          86,101,944   $    111,182,053




Permanently Restricted Net Assets

Permanently restricted net assets, reflected below at June 30, are restricted to investment in
perpetuity. The income from these assets is expendable to support the activities within each
category and is reclassified to temporarily restricted net assets.

                                                 2009               2008
                  Academics             $          23,636,108   $     25,463,118
                  Student aid                      31,967,634         32,149,037
                  Capital projects                  3,614,140          3,437,595
                  Athletic programs                   127,640            125,412
                  Research                          3,358,351          1,351,184
                  General support                   2,782,291          4,388,030
                                        $          65,486,164   $     66,914,376




                                            21
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 6 - Net Asset Classifications (continued)

Reclassification of Net Assets

Net assets which were released from temporarily restricted net assets and transferred to
unrestricted restricted net assets upon satisfaction of donor restrictions were expended as follows
for the years ended June 30:

                                                 2009               2008
                  Academics             $          10,519,900   $      4,688,805
                  Student aid                       3,410,633          3,880,227
                  Capital projects                  4,576,385            109,442
                  Athletic programs                 1,766,380          1,650,316
                  Research                            374,286            257,550
                  Loan program                        155,984          1,132,413
                                        $          20,803,568   $     11,718,753



During the year ended June 30, 2009, the Foundation reclassified approximately $3.1 million of
amounts originally included within permanently restricted endowments to temporarily or
unrestricted funds. This reclassification was completed based on revised donor agreements or
review and change in interpretation of existing fund agreements.

Other transfers relate mainly to transfers of spendable earnings from temporarily restricted quasi-
endowments to operating funds, as well as reclassifications of endowments determined to be
permanently restricted.




                                            22
              THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                       Notes to the Consolidated Financial Statements
                              Year Ended June 30, 2009 and 2008

    NOTE 7 - Donor and Board Restricted Endowments

    Net assets associated with endowment funds are classified and reported based on the existence or
    absence of donor-imposed restrictions. Changes in endowment net assets for the fiscal years
    ended June 30, 2009 and 2008 are as follows:

                                                          ---------- Donor - Endowed ----------
                                           Unrestricted     Temporarily        Permanently
                                         Board-Designated     Restricted        Restricted
                                            Net Assets        Net Assets        Net Assets       Total
Endowment net assets, June 30, 2008      $      6,795,115 $      72,776,837 $     66,914,376 $ 146,486,328

Investment return
  Investment income                                91,323        1,812,997         226,468       2,130,788
  Net appreciation (depreciation)              (1,274,915)     (24,251,906)     (1,728,865)    (27,255,686)
Total investment return                        (1,183,592)     (22,438,909)     (1,502,397)    (25,124,898)

Contributions and board transfers
 to endowment funds                                14,498        5,767,900       1,397,587       7,179,985

Other income/transfers to endowment
 funds                                                 -            34,514          39,448         73,962

Administrative fees                                (86,030)     (1,657,113)         (6,282)     (1,749,425)

Amounts transferred for appropriation
  of expenses                                         -           (146,322)            -          (146,322)
Reclassifications                                   1,303       (2,295,123)      2,293,820             -
Transfers from unrestricted -
  undesignated funds to cover
  deficiencies of perpetual endowments                 -         2,426,452             -         2,426,452

Other transfers                                  (161,815)         513,978      (3,650,388)   (3,298,225)
Change in net assets                           (1,415,636)     (17,794,623)     (1,428,212)  (20,638,471)
Endowment net assets, June 30, 2009      $      5,379,479 $     54,982,214 $    65,486,164 $ 125,847,857




                                              23
               THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                        Notes to the Consolidated Financial Statements
                               Year Ended June 30, 2009 and 2008

    NOTE 7 - Donor and Board Restricted Endowments (continued)

                                                          ---------- Donor - Endowed ----------
                                           Unrestricted     Temporarily        Permanently
                                         Board-Designated     Restricted        Restricted
                                            Net Assets        Net Assets        Net Assets      Total
Endowment net assets, June 30, 2007      $      7,191,835 $      75,724,972 $ 65,330,638 $ 148,247,445
Investment return
  Investment income                              105,334        2,136,637       251,688       2,493,659
  Net appreciation (depreciation)               (377,009)      (7,695,519)     (508,872)     (8,581,400)
Total investment return                         (271,675)      (5,558,882)     (257,184)     (6,087,741)
Contributions and board transfers to
 endowment funds                                    24,420     6,592,893       2,397,616      9,014,929

Other income / transfers to endowment
 funds                                                  -         17,557         89,030         106,587

Administrative fees                                 (86,944)   (1,777,730)        (6,789)    (1,871,463)
Amounts transferred for appropriation
  of expenses                                          -         (19,832)       (75,047)        (94,879)
Reclassifications                                    1,367      (244,348)       242,980              (1)
Transfers from unrestricted -
  undesignated funds to cover
  deficiencies of perpetual endowments                  -        166,927             -          166,927

Other transfers                                  (63,888)      (2,124,720)      (806,868)   (2,995,476)
Change in net assets                            (396,720)      (2,948,135)     1,583,738    (1,761,117)
Endowment net assets, June 30, 2008      $     6,795,115 $     72,776,837 $   66,914,376 $ 146,486,328


    Transfers from unrestricted - undesignated funds to cover deficiencies of perpetual endowments
    are required under accounting principles generally accepted in the United States of America
    when funds fall below the level which donors or UPMIFA require the Foundation to retain as a
    fund of perpetual duration. These deficiencies are required to be covered by the unrestricted -
    undesignated net assets of the Foundation.

    Net assets related to charitable remainder trusts are included in the above donor-restricted net
    assets, classified based on the donors’ restrictions. Charitable remainder trusts have assets
    invested based on the donor’s directive. Spending from net assets of charitable remainder trusts
    commences upon the maturity of the trust.




                                               24
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 7 - Donor and Board Restricted Endowments (continued)

Interpretation of Relevant Law

The Board of Trustees of the Foundation (Board) has reviewed UPMIFA and recognizes the
importance of the preservation of the donor-restricted endowment funds absent explicit donor
stipulations as well as the safeguarding of the original gifts to provide support to the University
in perpetuity. As a result, the Foundation classifies as permanently restricted net assets (a) the
original gifts donated to the permanent endowment, (b) the original value of subsequent gifts to
the permanent endowment, and (c) accumulations to the permanent endowment made in
accordance with the direction of the applicable donor gift instrument at the time the
accumulation is added to the fund. The remaining portion of the donor-restricted endowment
fund that is not classified as permanently restricted net assets is classified as temporarily
restricted net assets until those amounts are appropriated for expenditure by the Foundation in a
manner consistent with the standards of prudence prescribed by UPMIFA.

In Accordance with UPMIFA, the Foundation considers the following factors in making a
determination to appropriate or accumulate donor-restricted endowment funds:

       1.   Duration and preservation of the endowment fund
       2.   Purpose of the Foundation and the endowment fund
       3.   General economic conditions
       4.   Possible effect of inflation or deflation
       5.   Expected total return from income and the appreciation of investments
       6.   Other resources of the Foundation
       7.   Investment policy of the Foundation

Funds with Deficiencies

From time to time, the fair value of assets associated with individual donor-restricted endowment
funds may fall below the level that the donor or UPMIFA requires the Foundation to retain as a
fund of perpetual duration. In accordance with accounting principles generally accepted in the
United States of America, deficiencies of this nature are required to be covered by the
unrestricted assets of the Foundation. Accordingly, the Foundation has transferred $2,426,452
and $166,927 as of June 30, 2009 and 2008, respectively, to unrestricted funds from permanently
restricted funds. These deficiencies resulted from unfavorable market returns.




                                          25
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 7 - Donor and Board Restricted Endowments (continued)

Return Objectives and Risk Parameters

The Foundation has adopted investment and spending policies for endowment assets that attempt
to provide a predictable stream of funding to programs supported by its endowment while
seeking to maintain the purchasing power of the endowment assets. Endowment assets include
those assets of donor-restricted funds that the Foundation must hold in perpetuity or for a donor-
specified period as well as board-designated funds. Under the investment policy as approved by
the Board, the endowment assets are invested to achieve a total return, net of fees, equal to or
greater than the spending, administrative fees, and inflation.

A secondary objective is to achieve a total return in excess of the broad policy benchmarks
comprised of each broad asset category weighted by its target allocation. The current broad
policy benchmarks are:

                           Asset Category         Index
                           U.S. Equity            Russell 3000
                           International Equity   MSCI ACWI ex-US
                           Global Fixed Income    Barclays Aggregate Bond


Strategies Employed for Achieving Objectives

To satisfy its long-term total return objectives, the Foundation relies on a total return strategy in
which investment returns are achieved through both capital appreciation (realized and
unrealized) and current yield (interest and dividends). The Foundation targets a diversified asset
allocation that places greater emphasis on equity-based investments constructed with prudent
risk constraints. The Foundation expects its endowment funds over time, to provide an average
rate of return in excess of average appropriations.

Spending Policy and How the Investment Objectives Relate to Spending Policy

The Foundation has a spending policy based on a three-year moving market value average of
invested funds. The Foundation appropriated 4.9 percent for fiscal years 2009 and 2008. In
establishing this policy, the Foundation considered the long-term expected total return on
endowment assets. Accordingly, over the long term, the Foundation expects the current
spending policy to allow its endowments to accumulate capital sufficient to maintain its
purchasing power.




                                            26
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 8 - Related-Party Transactions

In February 2008, the Foundation issued a $295,170 five-year loan to the University Athletics
Department for the purchase of video equipment for the football program. Payments of $17,192
are due quarterly at an annual percentage rate of 6.0%. The balance on the note as of June 30,
2009 and 2008 was $215,651 and $269,448, respectively.

The Foundation has recorded a note receivable from the University on its statement of financial
position.

The Foundation also leases its office space from the University (see Note 4).

In 2008, the Foundation received a transfer from the University related to assignments of equity
rights in four start-up organizations. The transfer was recorded at fair value based on the
underlying value of the associated investments. In 2009, the Foundation assigned its equity rights
in the four start-up organizations to the Science, Technology, and Innovation Enterprise, a
separate 501(c)(3) organization and component unit of the University (see Note 3).

Throughout the year, the Foundation has purchased goods or services from companies which are
related to some Foundation board members through ownership or employment, the amounts of
which are immaterial.

NOTE 9 - Line of Credit

The Foundation had an unsecured, revolving line of credit agreement with a bank which
provided for borrowings up to $10,000,000, with interest at the bank’s prime rate less one
half-percent (4.5% at June 30, 2008). This line of credit was to be utilized in real estate
transactions entered into by the Foundation on behalf of the Corporation. There were no
borrowings on the line of credit in the current or prior year. The term of the revolving line of
credit agreement matured on October 29, 2008.

NOTE 10 - Real Estate Corporation

During fiscal year 2008, the Corporation purchased two commercial properties for $880,000 and
six residential properties for $521,350. At June 30, 2008, four of the residential properties are
under lease. Beginning in the fall of 2008, the Corporation will raze three commercial properties
and two residential properties.




                                          27
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 10 - Real Estate Corporation

In July 2004, the Corporation executed at $1,750,000 three-year loan with a bank for the
purchase of a building. Monthly interest payments are variable at 125 basis points above LIBOR
(3.71% at June 30, 2008) with maturity in July 2007. This agreement was renegotiated in July
2007 to extend the terms until July 2009. The outstanding balance was approximately
$1,319,000 and $1,407,000 as of June 30, 2009 and 2008, respectively, and has been classified as
short-term, note payable as of June 30, 2009.

In June 2008, the Corporation’s board approved the sale of the Kenwood Synagogue property.
The Corporation has met all the criterions as required by Financial Accounting Standards No.
144, Accounting for the Impairment or Disposal of Long-Lived Assets, and has consequently
classified land and building related to the property as held for sale. The fair value less cost to sell
has been estimated at approximately $1.2 million and $1.4 million as of June 30, 2009 and 2008,
respectively.

On January 30, 2009, the Corporation entered into a purchase agreement with an Ohio non-profit
corporation for the sale of the Kenwood Synagogue property. The sale was settled on May 27,
2009 for the purchase price of $1.3 million. The sales proceeds less reductions remain under an
escrow agreement whereas the purchaser has the right to deliver a notice to the Corporation that
it cannot satisfy the escrow condition under the escrow agreement and the sale would cease. The
property is classified as held for sale and reported at fair value less cost to sell, therefore the gain
or loss on the sale is expected to be minimal.

On November 25, 2008, the Corporation purchased property at 3242 Door Street, Toledo, Ohio,
in the amount of $1.025 million, for the future site of the Door Street Gateway.

NOTE 11 - Merger with Medical University of Ohio at Toledo Foundation (MUO
Foundation)

The University of Toledo Foundation merged with the Medical University of Ohio Foundation
effective July 1, 2007. The MUO Foundation is the surviving corporation and was renamed as
The University of Toledo Foundation. The merger was accounted for as a “pooling of interests.”
The consolidated financial statement reflect the combined assets, liabilities, and net assets of the
organizations at June 30, 2008; and the revenues, support, expenses, changes in net assets and
functional expenses for the entire fiscal year ended June 30, 2008. The effect of the merger on
the net assets for fiscal year 2008 was as follows:

            Net assets beginning of the year as of June 30, 2007             $  32,418,269
            Adjustments for the effect of the merger                           148,511,596
            Net assets beginning of the year restated as of June 30, 2008    $ 180,929,865




                                                28
          THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                   Notes to the Consolidated Financial Statements
                          Year Ended June 30, 2009 and 2008

NOTE 12 - Fair Value Measurements

The Foundation has adopted Statement of Financial Accounting Standards No. 157 (SFAS 157),
Fair Value Measurements, as of July 1, 2008. SFAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair value, and expands disclosure about fair value
measures. This standard applies under other accounting pronouncements that require or permit
fair value measurements and does not require any new fair value measurements. The
implementation of SFAS 157 for financial assets and liabilities did not have a material impact on
the Foundation’s consolidated financial statements.

SFAS 157 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used
to measure fair value. In general, fair values determined by Level 1 inputs use quoted prices in
active markets for identical assets or liabilities that the Foundation has the ability to access. Fair
values determined by Level 2 inputs include quoted prices for similar assets and liabilities in
active markets, and other inputs such as interest rates and yield curves that are observable at
commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are
available in situations where there is little, if any, market activity for the related asset or liability.

In instances where inputs used to measure fair value fall into different levels of the fair value
hierarchy, fair value measurements in their entirety are categorized based on the lowest level
input that is significant to the valuation. The Foundation assessment of the significance of
particular inputs to these fair value measurements requires judgment and considers factors
specific to each asset or liability.




                                             29
              THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                       Notes to the Consolidated Financial Statements
                              Year Ended June 30, 2009 and 2008

   NOTE 12 - Fair Value Measurements (continued)

   Disclosures concerning assets and liabilities measured at fair value are as follows:

                                     Fair Value Measurements as of June 30, 2009
                                                Quoted Prices in       Significant Other        Significant
                                                Active Markets           Observable            Unobservable
                                             in Identical Assets            Inputs                Inputs            Balance at
Description                                         (Level 1)              (Level 2)             (Level 3)         June 30, 2009
Assets:
 Investments (Note 3)
   Common stocks                            $        62,830,424    $            52,959                         $      62,883,383
   Corporate bonds                                                           1,256,350                                 1,256,350
   US Government and agency bonds                                            3,475,812                                 3,475,812
   Mutual funds - fixed income                       21,807,783                                                       21,807,783
   Hedge funds                                                                             $      18,232,459          18,232,459
   Partnerships                                                                                    1,778,653           1,778,653
   Assets held in remainder trusts                                                                 4,800,203           4,800,203
 Contributions receivable (Note 2)                                                                25,940,269          25,940,269
 Cash surrender value of life insurance                                                            1,381,743           1,381,743
 Long-lived asset held for sale (Note 10)                                                          1,200,158           1,200,158




                                                       30
                    THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                             Notes to the Consolidated Financial Statements
                                    Year Ended June 30, 2009 and 2008

       NOTE 12 - Fair Value Measurements (continued)

       Changes in level 3 assets and liabilities measured at fair value on a recurring basis:

                                                Fair Value Measurements of Assets Using Significant Unobservable Inputs (Level 3)
                                                                              as of June 30, 2009
                                                                     Equity       Assets Held in Contributions  CSV of      Assets Held
                                       Partnerships  Hedge Funds   Assignments Remainder Trust    Receivable    Life Ins.    for Sale
Balance as of June 30, 2008           $     801,107 $ 19,054,227 $ 4,886,635 $         6,628,624 $ 24,325,545 $ 1,391,203 $ 1,368,774
 Purchases / re-invested income             872,231     5,309,231                        252,309
 Withdrawals and settlements                     -     (1,940,184)
 Investment pool reallocation               (42,645)   (1,014,316)
 Transfer to University                                              (4,886,635)
 Policy maturities                                                                                                 (42,271)
 Change in cash surrender value                                                                                     32,811
 Distributions and fees                                                                 (435,739)
 Pledges received                                                                                   8,890,480
 Payments received                                                                                 (7,465,283)
 Change in present value                                                                               579,300
 Allowance and write-offs                                                                            (389,773)
 Unrealized gains (losses)                  147,960    (3,399,249)                      (797,911)                              (168,616)
 Realized gains (losses)                                  222,750                       (847,080)
Balance as of June 30, 2009           $ 1,778,653 $ 18,232,459 $            -    $     4,800,203 $ 25,940,269 $ 1,381,743 $ 1,200,158

Gains or losses included in earnings are reported in return of investments on the statements of activities:

                                                                            Equity       Assets Held in   Contributions    CSV of      Assets Held
                                       Partnerships     Hedge Funds       Assignments   Remainder Trust    Receivable      Life Ins.    for Sale
Total gains or losses
 included in earnings                 $     147,960 $     (3,176,499) $            -    $    (1,644,991) $     189,527 $       32,811 $   (168,616)




       Both observable and unobservable inputs may be used to determine the fair value of positions
       classified as Level 3 assets and liabilities. As a result, the unrealized gains and losses for these
       assets and liabilities presented in the tables above may include changes in fair value that were
       attributable to both observable and unobservable inputs.

       Hedge funds and partnership funds (funds) do not have readily determined fair values as they are
       not listed on national exchanges or over-the-counter markets. Fair value has been determined
       based on the individual fund’s net asset valuation which is considered an unobservable input
       Level 3 of the fair value hierarchy. The fund’s annual financial statements are prepared in
       accordance with accounting principles generally accepted in the United States of America and
       the underlying investments are reported at fair value.



                                                                  31
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 12 - Fair Value Measurements (continued)

Charitable remainder trusts are measured based on the present value of the expected income from
the assets; as such, the charitable remainder trust is considered to be determined based on Level
3 inputs.

Long-lived assets held for sale are recorded at fair value in accordance with Financial
Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets
(see Note 10). Fair value was determined based on the actual purchase price and costs to sell as
documented in the purchase agreement. The purchase agreement is considered a Level 3 input,
but provides a true exit price from the perspective of the Foundation.

Cash value of life insurance and annuities are presented at fair value based on the amount
available in cash upon cancellation of the insurance policy before maturity as of the reporting
period. The fair value is determined by the insurer and represents the exit price from the
perspective of the Foundation. However, since the valuation is considered unobservable, the
cash surrender value calculation is considered a Level 3 input.

In 2008, the Foundation received a transfer from the University related to assignments of equity
and subsequently assigned those rights to STIE in 2009. The equity assignments were recorded
at fair value based on the most current exchange of shares of each equity assignment. The
transactions occurred outside of an active market and therefore, the prices per shares are
considered Level 3 inputs.

Other assets including property and equipment, goodwill, intangible assets, and other assets
acquired in business combinations are also subject to periodic impairment assessments under
other accounting principles generally accepted in the United States of America. These assets are
not considered financial assets. Effective February 12, 2008, the FASB issued a staff position,
FSP FAS 157-2, which delayed the applicability of SFAS 157 to non-financial assets and
liabilities until years beginning after November 15, 2008. Accordingly, these assets have been
omitted from the above disclosures.

The Foundation has adopted Statement of Financial Accounting Standards No. 159 (SFAS 159),
Fair Value Option for Financial Assets and Financial Liabilities, effective for fiscal years
beginning after November 15, 2007. This statement permits entities to choose to measure many
financial instruments and certain other items at fair value.




                                         32
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 12 - Fair Value Measurements (continued)

Pursuant to this adoption, the Foundation elected to measure contributions receivable at fair
value to provide a valuation based on current yield curves and create consistency in financial
presentation with measurements of other financial instruments. The election of the fair value
option did not have a material impact on the Foundation’s consolidated financial statements.
Fair value is determined using the income approach as described in SFAS 157 - expected present
value technique adjusting cash flows from unconditional promises to give by a risk premium and
then discounting the expected cash flows, cash flows net of risk premium, using a risk-free
interest rate based on current market conditions. The risk premium is determined for each
individual pledge based on any expected variance in timing of payments, pledges past due,
donor’s relationship with the Foundation, publicity of the pledge, the Foundation’s collection
history, and any other relevant information.

NOTE 13 - Fair Value of Financial Instruments

The fair value of short-term financial instruments, including cash and cash equivalents, accounts
receivable, notes receivable, other current assets, accounts payable, and accrued liabilities are
equal to the carrying amounts in the accompanying financial statements due to the short maturity
of such instruments.

Contributions receivable are stated at fair value as described in Notes 1, 2, and 12.

Pooled investments and investments held in charitable remainder trusts are stated at fair value as
described in Notes 1 and 3.

Long-lived assets held for sale are recorded at fair value in accordance with Financial
Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets
(see Note 10).

The fair value of the notes payable is equal to the carrying amount since the current effective rate
reflects market rates.




                                           33
         THE UNIVERSITY OF TOLEDO FOUNDATION AND SUBSIDIARIES
                  Notes to the Consolidated Financial Statements
                         Year Ended June 30, 2009 and 2008

NOTE 14 - Prior Period Adjustment

The accompanying financial statements for 2008 have been restated to correct an error relating to
recording the securities lending arrangement discussed in Note 3.

An entry was recorded to present an asset and liability equal to $10,252,334, respectively,
associated with the collateral related to the securities lending arrangement. As a result of the
prior period adjustment, total assets and total liabilities have increased by $10,252,334 for the
year ended June 30, 2008. There was no impact to total net assets or to the statement of
activities or statement of cash flows relative to this adjustment.

NOTE 15 - Concentration of Credit Risk

The Foundation maintains cash balances at several financial institutions. Accounts at each
institution are insured by the Federal Deposit Insurance Corporation up to $250,000. During
fiscal years ended June 30, 2009 and 2008, the Foundation maintained balances which exceeded
insurable limits.

NOTE 16 - Subsequent Events

Effective July 14, 2009, the Corporation’s note payable matured. The Corporation executed a
revolving one-year line of credit loan in the amount of $1,320,270, with a maturity of July 14,
2010. The variable interest rate on the line of credit is set at LIBOR plus 225 basis points. At the
time of the execution of the line of credit, LIBOR was set at 3.25% per annum.

Effective July 1, 2009, the Foundation transferred ownership and control of MCOF Enterprises,
Ltd., to the Science, Technology and Innovation Enterprises MCOFE Holding Inc., an Ohio
corporation and wholly owned subsidiary of the Science, Technology and Innovation Enterprises
Ltd., an Ohio non-profit corporation whose sole member is the University. MCOF Enterprises,
Ltd. had assets of $345,765, liabilities of $292,388, and equity of $53,377 as of June 30, 2009.

On August 10, 2009, the Corporation entered into a real estate purchase agreement for the
acquisition of the real property at 3356 Downing Avenue, Toledo, Ohio, for the purchase price of
$87,000.




                                           34
Other Financial Information




          35
To the Board of Trustees
University of Toledo Foundation
  and Subsidiaries


We have audited the accompanying consolidated statements of financial position of the University of
Toledo Foundation and Subsidiaries (the “Foundation”), an Ohio not-for-profit corporation, as of June 30,
2009 and 2008 and the related consolidated statements of activities and cash flows for the years then
ended. Our audits were made for the purpose of forming an opinion on the consolidated financial
statements taken as a whole. The following information in the accompanying consolidating schedules is
presented for the purpose of additional analysis of the consolidated financial statements rather than to
present the financial position, results of operations, and cash flows of the University of Toledo
Foundation, University of Toledo Foundation Real Estate Corp., University Promotions, Ltd., CAHS,
Ltd., and MCOF Enterprises, Ltd. and is not a required part of the basic consolidated financial statements.
The following information has been subjected to the procedures applied in the audits of the consolidated
financial statements and, in our opinion, is fairly stated in all material respects in relation to the
consolidated financial statements taken as a whole.




September 29, 2009




                                                    36
                             The University of Toledo Foundation and Subsidiaries
                                 Consolidating Statement of Financial Position
                                              As of June 30, 2009
                                                                   University of                         Consolidated
                                                    University of      Toledo                            University of
                                                      Toledo      Foundation Real    MCOF                  Toledo
                                                    Foundation      Estate Corp. Enterprises, Ltd.       Foundation
Assets
Current Assets:
   Cash                                             $       923,976   $    151,233    $     8,514    $       1,083,723
   Securities lending collateral                          1,151,421                                          1,151,421
   Accounts receivable                                      154,739        139,492        323,582              617,813
   Notes receivable                                          57,099                                             57,099
   Contributions receivable, net of allowance
    for uncollectible contributions                       4,593,800                                          4,593,800
   Interest receivable                                      131,303                                            131,303
   Prepaid expenses                                          20,364                                             20,364
Total current assets                                      7,032,702        290,725        332,096            7,655,523

Other assets:
   Investments:
       Marketable - Pooled                              119,789,742                                        119,789,742
       Real estate and other                              1,061,598                                          1,061,598
       Assets held in charitable remainder trusts         4,800,203                                          4,800,203
   Total investments                                    125,651,543             -             -            125,651,543

   Notes receivable                                        158,552                                             158,552
   Prepaid rent                                            418,848                                             418,848
   Contributions receivable, net of allowance
    for uncollectible contributions and present
    value adjustment                                     21,346,469                                         21,346,469
   Cash value of life insurance                           1,381,743                                          1,381,743
   Land held for sale                                                     1,200,158                          1,200,158
Total other assets                                      148,957,155       1,200,158           -            150,157,313

Property and equipment
   Land                                                     11,970        4,273,797                          4,285,767
   Rental property                                                          981,658                            981,658
   Office equipment                                        599,676          312,015        19,736              931,427
   Total property and equipment                            611,646        5,567,470        19,736            6,198,852
   Less accumulated depreciation                           559,103          391,250         6,067              956,420
Net property and equipment                                  52,543        5,176,220        13,669            5,242,432

Total assets                                        $ 156,042,400     $   6,667,103   $   345,765    $     163,055,268



                                                    37
                              The University of Toledo Foundation and Subsidiaries
                             Consolidating Statement of Financial Position (continued)
                                                As of June 30, 2009

                                                                         University of                         Consolidated
                                                     University of           Toledo                            University of
                                                       Toledo           Foundation Real    MCOF                  Toledo
                                                     Foundation           Estate Corp. Enterprises, Ltd.       Foundation
Liabilities
Current liabilities:
    Accounts payable                             $        1,324,932                       $     292,388    $        1,617,320
    Securities lending liability                          1,151,421                                                 1,151,421
    Notes payable                                                       $     1,319,768                             1,319,768
    Contribution payable                                    110,000                                                   110,000
    Deferred revenue                                        120,000             51,725                                171,725
    Accrued liabilities                                     119,896                                                   119,896
Total current liabilities                                 2,826,249           1,371,493         292,388             4,490,130

Noncurrent liabilities
    Annuities payable                                     3,949,441                                                 3,949,441
Total liabilities                                         6,775,690           1,371,493         292,388             8,439,571

Net assets
    Unrestricted
        Operating Funds
            Undesignated                                  (8,899,460)                                              (8,899,460)
            Designated - real estate                                          5,295,610                             5,295,610
            Designated - board                             1,198,583                             53,377             1,251,960
            Total unrestricted operating funds            (7,700,877)         5,295,610          53,377            (2,351,890)
        Board endowed                                      5,379,479                                                5,379,479
    Total Unrestricted                                    (2,321,398)         5,295,610          53,377             3,027,589

    Temporarily restricted:
       Operating funds                                  31,119,730                                                31,119,730
       Quasi-endowment                                  54,982,214                                                54,982,214
    Total temporarily restricted                        86,101,944                  -               -             86,101,944

    Permanently restricted                              65,486,164                                                65,486,164
Total net assets                                       149,266,710            5,295,610          53,377          154,615,697

Total liabilities and net assets                 $ 156,042,400 $              6,667,103 $       345,765    $     163,055,268




                                                     38
                                                          The University of Toledo Foundation and Subsidiaries
                                                                    Statement of Financial Position
                                                                              June 30, 2008

                                                      University of            UTF
                                                        Toledo                 Real             University                        MCOF                                Consolidated
                                                      Foundation           Estate Corp.       Promotions, Ltd.   CAHS, Ltd.   Enterprises, Ltd.   Eliminations           UTF
Assets
Current assets:
  Cash                                            $        1,354,848   $          31,031      $        71,305    $    5,184   $        142,618    $          -    $          1,604,986
  Securities lending collateral                           10,252,334                                                                                                        10,252,334
  Accounts receivable                                        491,733              15,261                9,000             -                   -       (102,826)                413,168
  Notes receivable                                            53,798                   -                    -             -                   -              -                  53,798
  Contributions receivable, net of allowance
    for uncollectible contributions                        3,275,257                   -                    -             -                  -               -               3,275,257
  Interest receivable                                        132,319                   -                    -             -                  -               -                 132,319
  Prepaid expenses                                            59,426                   -                    -             -                  -               -                  59,426
  Inventory                                                        -                   -                   72             -                  -               -                      72
Total current assets                                      15,619,715              46,292               80,377         5,184            142,618        (102,826)             15,791,360
Other assets:
  Investments:
     Pooled                                              150,971,474                      -                  -            -                   -              -             150,971,474
     Real estate and other                                   973,667                      -                  -            -                   -              -                 973,667
     Investments in equity assignments                     4,886,635                      -                  -            -                   -              -               4,886,635
     Assets held in charitable remainder trusts            6,628,624                      -                  -            -                   -              -               6,628,624
  Total investments                                      163,460,400                      -                  -            -                   -              -             163,460,400
  Notes receivable - long term                               215,650                      -                  -            -                   -              -                215,650
  Contributions receivable - long term, net of
    allowance for uncollectible contributions
    and present value adjustment                          21,050,288                   -                     -            -                   -              -              21,050,288
  Cash value of life insurance                             1,391,203                   -                     -            -                   -              -               1,391,203
  Asset held for sale                                              -           1,368,774                     -            -                   -              -               1,368,774
Total other assets                                       186,117,541           1,368,774                     -            -                   -              -             187,486,315
Property and equipment:
   Land                                                       11,970           3,210,904                    -             -                  -               -               3,222,874
   Rental property                                                 -             976,931                    -             -                  -               -                 976,931
   Office equipment                                          601,272             312,017                    -             -              3,243               -                 916,532
   Total property and equipment                              613,242           4,499,852                    -             -              3,243               -               5,116,337
   Less accumulated depreciation                             554,117             301,995                    -             -                323               -                 856,435
Net property and equipment                                    59,125           4,197,857                    -             -              2,920               -               4,259,902
Total assets                                      $      201,796,381   $       5,612,923      $        80,377    $    5,184   $        145,538    $   (102,826) $          207,537,577




                                                                                                                                                                      39
                                                  The University of Toledo Foundation and Subsidiaries
                                                       Statement of Finanical Position (continued)
                                                                      June 30, 2008
                                             University of            UTF
                                               Toledo           Foundation Real     University                                MCOF                            Consolidated
                                             Foundation           Estate Corp.    Promotions, Ltd.       CAHS, Ltd.       Enterprises, Ltd.   Eliminations       UTF
Liabilities
Current liabilities:
  Accounts payable                       $           702,083    $             -   $            51    $          4,147     $        15,598     $          -    $       721,879
  Securities lending liability                    10,252,334                                                                                                       10,252,334
  Notes payable                                            -          1,407,292                 -                   -                   -                -          1,407,292
  Contribution payable                               158,723                  -                 -                   -                   -                -            158,723
  Accrued liabilities                                 97,796             14,764            94,578               7,438                 831         (102,826)           112,581
Total current liabilities                         11,210,936          1,422,056            94,629              11,585              16,429         (102,826)        12,652,809
Noncurrent liabilities:
  Annuities payable                                4,346,334                  -                 -                   -                   -                -          4,346,334
Total liabilities                                 15,557,270          1,422,056            94,629              11,585              16,429         (102,826)        16,999,143
Net assets
Unrestricted:
  Operating Funds:
    Undesignated                                    (559,921)                 -                 -                   -                   -                -           (559,921)
    Designated - real estate                               -          4,190,867                 -                   -                   -                -          4,190,867
    Designated - board                             1,907,488                  -           (14,252)             (6,401)            129,109                -          2,015,944
    Total unrestricted operating funds             1,347,567          4,190,867           (14,252)             (6,401)            129,109                -          5,646,890
  Board endowed                                    6,795,115                  -                 -                   -                   -                -          6,795,115
Total unrestricted                                 8,142,682          4,190,867           (14,252)             (6,401)            129,109                -         12,442,005
Temporarily restricted:
  Operating funds                                 38,405,216                  -                 -                     -                  -               -         38,405,216
  Quasi-endowment                                 72,776,837                  -                 -                     -                  -               -         72,776,837
Total temporarily restricted                     111,182,053                  -                 -                     -                  -               -        111,182,053

Permanently restricted                            66,914,376                  -                 -                   -                   -                -         66,914,376
Total net assets                                 186,239,111          4,190,867           (14,252)             (6,401)            129,109                -        190,538,434

Total liabilities and net assets         $       201,796,381    $     5,612,923   $        80,377    $          5,184     $       145,538     $   (102,826) $ 207,537,577




                                                                                                                                                                  40
                                                                               The University of Toledo Foundation and Subsidiaries
                                                                                      Consolidating Statement of Activities
                                                                                            Year Ended June 30, 2009

                                                                                  UTF                                                                                  Consolidated
                                                            University of         Real      University                MCOF                                    Temporarily     Permanently            University of
                                                              Toledo             Estate      Promo.       CAHS      Enterprises    Elim.      Unrestricted    Unrestricted     Restricted              Toledo
                                                            Foundation            Corp.        Ltd.        Ltd.        Ltd.        adj.        Net Assets      Net Assets      Net Assets            Foundation
Support, revenue, and gains (losses)
Public support:
  Unconditional promises to give (gross)                    $    8,550,001                                                                                    $    8,550,001                     $       8,550,001
  Allowance for uncollectible contributions and
       present value adjustment                                    530,007                                                                                           530,007                               530,007
  Unconditional promises to give (net)                           9,080,008                                                                                         9,080,008                             9,080,008
  Contributions                                                  7,353,914                                                                         646,813         5,274,773       1,432,328             7,353,914
  Annuities and trusts (net of actuarial adjustments)              (53,390)                                                                                          (18,649)        (34,741)              (53,390)
  Royalties and ancillary businesses                                                               351      1,625       904,241                    906,217                                                 906,217
  Total public support                                          16,380,532            -            351      1,625       904,241        -         1,553,030        14,336,132       1,397,587            17,286,749

Administrative fees                                                617,914                                                                       2,285,837         (1,661,641)         (6,282)             617,914

Return on investments:
   Interest and dividends                                         2,983,091                                                                        632,251          2,092,637         258,203            2,983,091
   Net realized and unrealized (loss) on investments            (33,370,346)                                                                    (7,308,499)       (24,332,982)     (1,728,865)         (33,370,346)
   Investment fees                                                 (360,597)                                                                       (78,044)          (250,818)        (31,735)            (360,597)
   Net return on investments                                    (30,747,852)          -             -         -             -          -        (6,754,292)       (22,491,163)     (1,502,397)         (30,747,852)

Other income:
   Non-gift and other income                                     1,902,618                                                          (4,162)          8,707         1,850,301          39,448             1,898,456
   Income-REC                                                                      64,373                                                           64,373                                                  64,373
   University loan program                                           4,515                                                                                             4,515                                 4,515
   Total other income                                            1,907,133         64,373           -         -             -       (4,162)         73,080         1,854,816          39,448             1,967,344

Net assets released from restrictions and other transfers
   Satisfaction of program and donor restrictions                     -                                                                         20,803,568        (20,803,568)            -
   Expiration of time restrictions (pledge payments)                  -                                                                             41,053         (2,334,873)      2,293,820
   Other transfers                                             (1,616,561)   1,595,241           13,885     7,435           -                   (2,369,800)         6,020,188      (3,650,388)                  -
Total support, revenues and gains                           $ (13,458,834) $ 1,659,614      $    14,236   $ 9,060   $   904,241   $ (4,162)   $ 15,632,476 $      (25,080,109) $   (1,428,212) $        (10,875,845)




                                                                                                                                                                                        41
                                                                       The University of Toledo Foundation and Subsidiaries
                                                                         Consolidating Statement of Activities (continued)
                                                                                    Year Ended June 30, 2009

                                                                        UTF                                                                                                   Consolidated
                                                      University of     Real           University                      MCOF                                          Temporarily      Permanently     University of
                                                        Toledo         Estate           Promo.         CAHS          Enterprises     Elim.         Unrestricted      Unrestricted      Restricted       Toledo
                                                      Foundation        Corp.            Ltd.           Ltd.            Ltd.          adj.          Net Assets        Net Assets       Net Assets     Foundation
Total support, revenues and gains                   $   (13,458,834) $ 1,659,614       $ 14,236       $ 9,060       $    904,241    $ (4,162)     $ 15,632,476      $ (25,080,109) $     (1,428,212) $ (10,875,845)

  Program services:
       Academics                                          5,812,827                                                      871,167                       6,683,994                                               6,683,994
       University Loan Program                              155,984                                                                                      155,984                                                 155,984
       Student aid                                        3,446,665                                                                                    3,446,665                                               3,446,665
       Capital projects                                   4,585,457                                                                                    4,585,457                                               4,585,457
       Athletic programs                                  1,766,380                                                                                    1,766,380                                               1,766,380
       Research                                             374,286                                                                                      374,286                                                 374,286
  Fund raising                                              608,822                                                                                      608,822                                                 608,822
  Management and general-operating                        1,876,511                                                                                    1,876,511                                               1,876,511
  Management and general-REC                                                554,871                                                                      554,871                                                 554,871
  University Promotions, Ltd.                                                                  (16)                                                          (16)                                                    (16)
  College of Allied Health Sciences, Ltd.                                                                 2,659                                            2,659                                                   2,659
  MCOF Enterprises, Ltd.                                                                                                 108,806        (4,162)          104,644                                                 104,644
Total expenses                                           18,626,932         554,871            (16)       2,659          979,973        (4,162)       20,160,257                -                 -           20,160,257

Increase (decrease) in net assets before transfer
   to University of Toledo                              (32,085,766)       1,104,743       14,252         6,401          (75,732)          -          (4,527,781)       (25,080,109)       (1,428,212)       (31,036,102)
Transfers to the University of Toledo                    (4,886,635)                                                                                  (4,886,635)                                             (4,886,635)
Change in net assets and transfers to University        (36,972,401)       1,104,743       14,252         6,401          (75,732)          -          (9,414,416)       (25,080,109)       (1,428,212)       (35,922,737)

Beginning balance net assets                            186,239,111        4,190,867       (14,252)       (6,401)        129,109           -          12,442,005        111,182,053        66,914,376        190,538,434

Net assets at end of year                           $   149,266,710    $   5,295,610   $       -      $      -      $     53,377    $      -      $    3,027,589    $    86,101,944    $   65,486,164    $   154,615,697




                                                                                                                                                                                                42
                                                                                  The University of Toledo Foundation and Subsidiaries
                                                                                         Consolidating Statement of Activities
                                                                                               Year Ended June 30, 2008

                                                                                    UTF                                                                                               Consolidated
                                                                University of       Real         University                     MCOF                                           Temporarily    Permanently       University of
                                                                  Toledo            Estate        Promo.       CAHS           Enterprises      Elim.          Unrestricted     Unrestricted    Restricted         Toledo
                                                                Foundation          Corp.           Ltd.        Ltd.             Ltd.          adj.            Net Assets       Net Assets     Net Assets       Foundation
Support, revenue, and gains (losses)
Public support:
  Unconditional promises to give (gross)                    $      11,618,524                                                                                                  $   11,618,524                   $   11,618,524
  Allowance for uncollectible contributions and
       present value adjustment                                       945,953                                                                                                         945,953                          945,953
  Unconditional promises to give (net)                             12,564,477                                                                                                      12,564,477                       12,564,477
  Contributions                                                     9,594,589                                                                                      163,372          7,033,601      2,397,616         9,594,589
  Annuities and trusts (net of actuarial adjustments)                  81,812                                                                                                          26,019         55,793            81,812
  Royalties and ancillary businesses                                                                 149,688     66,878            614,545                         831,111                                             831,111
  Total public support                                             22,240,878                -       149,688     66,878            614,545         -               994,483         19,624,097      2,453,409        23,071,989

Administrative fees                                                   682,699                                                                                     2,471,973         (1,782,485)       (6,789)          682,699

Return on investments:
   Interest and dividends                                           3,489,923                                                                                       657,624          2,540,856      291,443           3,489,923
   Net realized and unrealized (loss) on investments              (10,488,908)                                                                                   (2,178,840)        (7,801,196)    (508,872)        (10,488,908)
   Equity in net income of investments                                213,186                                                                                       213,186                                             213,186
   Investment fees                                                   (509,037)                                                                                     (101,685)          (367,597)     (39,755)           (509,037)
   Net return on investments                                       (7,294,836)               -           -          -                  -           -             (1,409,715)        (5,627,937)    (257,184)         (7,294,836)

Other income:
   Non-gift and other income                                        1,945,797                                                                  (46,443)            168,715          1,697,402        33,237          1,899,354
   Income-REC                                                                         302,059                                                                      302,059                                             302,059
   University loan program                                          2,512,824                                                                                                       2,512,824                        2,512,824
   Total other income                                               4,458,621         302,059            -          -                  -       (46,443)            470,774          4,210,226        33,237          4,714,237

Net assets released from restrictions and other transfers
   Satisfaction of program and donor restrictions                                                                                                               11,718,753         (11,643,706)      (75,047)              -
   Expiration of time restrictions (pledge payments)                                                                                                                54,945            (297,925)      242,980               -
   Other transfers                                                 (1,233,755)      1,233,755            -          -                  -                           (94,399)            901,267      (806,868)              -
Total support, revenues and gains                           $      18,853,607 $     1,535,814    $   149,688   $ 66,878   $        614,545 $   (46,443)   $     14,206,814 $         5,383,537 $   1,583,738 $      21,174,089




                                                                                                                                                                                                      43
                                                                   The University of Toledo Foundation and Subsidiaries
                                                                     Consolidating Statement of Activities (continued)
                                                                                Year Ended June 30, 2008

                                                                 UTF                                                                                                Consolidated
                                              University of      Real         University                     MCOF                                           Temporarily     Permanently         University of
                                                Toledo          Estate         Promo.         CAHS         Enterprises     Elim.         Unrestricted       Unrestricted      Restricted          Toledo
                                              Foundation         Corp.           Ltd.          Ltd.           Ltd.         adj.           Net Assets         Net Assets       Net Assets        Foundation
Total support, revenues and gains           $    18,853,607   $ 1,535,814     $ 149,688      $ 66,878     $    614,545   $ (46,443)     $ 14,206,814      $      5,383,537 $     1,583,738    $    21,174,089

  Program services:
       Academics                                  5,224,121                                                    419,004                       5,643,125                                              5,643,125
       University Loan Program                    1,132,413                                                                                  1,132,413                                              1,132,413
       Student aid                                3,875,742                                                                                  3,875,742                                              3,875,742
       Capital projects                             312,309                                                                                    312,309                                                312,309
       Athletic programs                          1,650,316                                                                                  1,650,316                                              1,650,316
       Research                                     257,550                                                                                    257,550                                                257,550
  Fund raising                                      760,501                                                                                    760,501                                                760,501
  Management and general-operating                2,054,134                                                                                  2,054,134                                              2,054,134
  Management and general-REC                                       499,111                                                                     499,111                                                499,111
  University Promotions, Ltd.                                                     146,171                                    (28,069)          118,102                                                118,102
  College of Allied Health Sciences, Ltd.                                                      65,077                         (3,036)           62,041                                                 62,041
  MCOF Enterprises, Ltd.                                                                                       102,149       (15,338)           86,811                                                 86,811
Total expenses                                   15,267,086        499,111        146,171      65,077          521,153       (46,443)       16,452,155                 -                -          16,452,155

Increase (decrease) in net assets before
   transfer from University of Toledo             3,586,521       1,036,703         3,517       1,801           93,392           -          (2,245,341)          5,383,537        1,583,738         4,721,934
Transfers from the University of Toledo           4,886,635                                                                                  4,886,635                                              4,886,635
Change in net assets                              8,473,156       1,036,703         3,517       1,801           93,392           -           2,641,294           5,383,537        1,583,738         9,608,569

Beginning balance net assets                    177,765,955       3,154,164       (17,769)      (8,202)         35,717           -          14,687,346        100,911,881        65,330,638       180,929,865

Net assets at end of year                   $   186,239,111   $   4,190,867   $   (14,252) $    (6,401) $      129,109   $       -      $   17,328,640    $   106,295,418    $   66,914,376   $   190,538,434




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